All European Banks expect Monday, March 20, 2023

 

Sunday, March 19, 2023. The Banks of Great Britain were in turmoil and distress.

The Minister of Finance and the governor of the Central Bank are in ongoing talks.

There are significant Fears of layoffs at Swiss bank branches in the shadow of the Credit Suisse crisis.

Within ten days, three banks collapsed, two American, Silicon Valley Bank, Signature Bank, and Swiss Crédit Suisse.

 This alarming situation has undoubtedly caused global banking concerns, with the most important financial centers also putting their banking under the microscope.

Therefore, London has also had second thoughts as it is expected even this week that the Central Bank of England will take different decisions to avoid, as much as possible, any damaging effects from the collapsing Crédit Suisse.

In particular, under the warnings of market players of a new global financial crisis, the Bank of England (BoE) is expected to suspend its decision on an additional 0.25% increase in interest rates as this would put further pressure on the banking system.

It all depends on the decisions in Switzerland.

The vice president of the Center for Economic Research (CEBR), Douglas McWilliams, who spoke to the Telegraph, estimated that "the fight against inflation will be a bit behind because it is impossible to deal with two fronts at the same time, namely the banking crisis and inflation."

According to Reuters information from a source with knowledge of the matter, British Chancellor of the Exchequer Jeremy Hunt and Bank of England Governor Andrew Bailey are in ongoing discussions this weekend about the future of the Swiss bank.

Since last night the Swiss government, Crédit Suisse, and UBS have been trying to find a solution before the stock markets open on Monday, with one scenario being a merger of the two banks. However, it is pointed out that UBS is one of the 30 largest banks worldwide, as the bank's assets exceed 1.1 trillion dollars.

The scenarios of layoffs and changes.

Whatever the outcome, the UK economy will be affected. Britain is an important market for the failed Swiss bank Crédit Suisse when one considers its portfolio on British soil reaching $60 billion.

The British authorities, namely the Bank of England, the Treasury, and the Securities and Exchange Commission (FCA), are looking into which other banking institutions are exposed. Douglas McGillias pointed out at the same time that "the crisis will hit consumers immediately, especially in the mortgage market," which proves how immediate the turmoil is among the British people.

According to the Telegraph, there are also concerns about thousands of redundancies at the banks in London as almost 10,000 people work for Crédit Suisse and UBS in the City and Canary Wharf, who will be out a job in a possible merger.

Dangerous times emerge in front of us, High inflation, global recession, and in the background, a looming war.

The American Banking Tsunami has undoubtedly crossed the Atlantic Ocean.

@world.war.3.2023